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12 JITO Administrative Training Foundation v. DIT (Exemption) ITAT ‘J’ Bench, Mumbai Before Pramod Kumar (AM) and P. Madhavi Devi (JM) ITA No. 4126/Mum./2009 Decided on : 18-3-2010
Counsel for assessee/revenue : A. H. Dalal/L. K. Agarwal
S. 12AA — Registration of Charitable Trust — Whether rejection of registration on grounds of (a) genuineness of appellant; and (ii) alleged violation of S. 13(1)(b) sustainable — Held, No.
The assessee was a company registered u/s.25 of the Companies Act, 1956. It was set up for the purpose of rendering certain services in the field of inter alia, education. Its application for registration made u/s.12A of the Act was rejected. The reasons for the rejection given amongst others, were as under :
The genuineness of the appellant was not proved; and
Alleged violation of S. 13(1)(b) of the Act.
The DIT relied on the decisions in the cases of Zenith Tin Works Charitable Trust 103ITR119 (Mum) and Yogiraj Charitable Trust [103ITR777(SC)].
Held :
The Tribunal relying on the decision in the case of Agarwal Mitra Mandal Trust 106ITD531(Mum)held that the rejection of registration by the DIT was not sustainable. According to it, at the time of considering the application for registration, the DIT is only required to examine whether the activities of the applicant were bona fide or not. The compliance with the provisions of S. 13(1)(b) were not relevant at the time of considering the application for registration.